Abstract

Abstract The purpose of this article is to investigate the degree to which the OECD Guidelines for Multinational Enterprises – meant for businesses – apply to Non-Profit Organisations’ (NPOs) operations and accountability. Based on a legal analysis of complaints handled by the National Contact Points (NCPs) in Norway, Switzerland, and the United Kingdom against NPOs, this paper shows that OECD Guidelines apply to certain types of NPOs, even if these organisations are by nature non-profit. It presents three conditions under which the OECD Guidelines can apply to NPOs: first, the NPO needs to operate in at least two countries; second, it must operate within a signatory state of the OECD Guidelines; and third, the OECD Guidelines violation must have occurred in relation to the business-activity of the NPO.

Highlights

  • In 1976, the Organisation for Economic Co-operation and Development (OECD) adopted the Guidelines for Multinational Enterprises (OECD Guidelines) to promote a more responsible corporate approach to human rights among multinational enterprises and regulate their activities in developing countries (OECD 2011a, 2011b)

  • Based on a legal analysis of complaints handled by the National Contact Points (NCPs) in Norway, Switzerland, and the United Kingdom against Non-Profit Organisations’ (NPOs), this paper shows that OECD Guidelines apply to certain types of NPOs, even if these organisations are by nature non-profit

  • The purpose of this paper is to examine the degree to which the OECD Guidelines apply to NPOs, exploring how they can be subjected to an NCP’s complaint about their adverse human rights impact

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Summary

Introduction

In 1976, the Organisation for Economic Co-operation and Development (OECD) adopted the Guidelines for Multinational Enterprises (OECD Guidelines) to promote a more responsible corporate approach to human rights among multinational enterprises and regulate their activities in developing countries (OECD 2011a, 2011b). The OECD Guidelines consist of voluntary recommendations addressed by governments to multinational corporations operating in or from adhering countries (OECD 2001, 9) This non-legally binding instrument sets standards of behaviour to promote responsible business in different fields: transparency, human rights, employment and. NPOs operate in different areas of operations (e.g. humanitarian relief, education, health etc.) and perform many functions in our society ranging from delivering social services to defending human rights and protecting vulnerable groups (Anheier 2005, 54) When it comes to international human rights law, NPOs – especially INGOs – play a crucial role in the overall promotion of human rights standards by holding states, businesses and international institutions accountable for their adverse human rights impact (Polizzi and Murdie 2019). Apart from drawing attention to human rights violations caused by NPOs, these complaints have posed the question of whether the OECD Guidelines, meant for corporations, can apply to NPOs’ operations and accountability

The Evolution of NCPs Caselaw
The Application of the OECD Guidelines to NPOs
The NPO Must Operate Internationally
The NPO Must Operate within a Signatory State of the OECD Guidelines
The NPO Must Carry out Business Activities
Findings
Conclusion
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